Many of us have the dream of starting a business, or working self-employed from home. I love working from home, even though sometimes I feel like I am anything but my own boss. In my case, leaving my “day job” was easy — I didn’t have one. Instead of leaving a traditional job to work from home, I had just completed a graduate degree. My husband still had more schooling, so we decided that we would use his student loans to supplement for a year or two while I worked to build a freelancing business.
The result was that we never had to worry about the income drop that comes when you quit your day job to start a business from home. Others, though, don’t have that luxury. Before you quit your day job, you need to carefully consider your financial situation, and ask a few questions.
Here are five things to consider before quitting your day job to work from home:
A successful home business doesn’t happen overnight. Before you quit your day job, you need to have a financial support system in place.
If you can support yourself while you work to get the business off the ground, it might be a good time to quit your day job.
Perhaps you can start your side business without quitting your job. If you can spend two or three hours in the evening working on your business (instead of watching TV), perhaps you can get some revenue coming in. Then, you can address the issue of quitting later, when your home business is more established.
If your life partner has the benefits, then your quitting won’t make a big difference. However, if your day job has been providing the benefits, you need to come up with a viable plan. Health insurance is costly, and you need to be ready to deal with that reality. Before you quit, come up with a plan for providing benefits for your family.
Make sure you have a workspace available to you. It doesn’t have to be a big space, but it should have what you need. Make sure you have the Internet connection you need, as well as the office supplies that will make your home office work. You want to set up for success before you quit your day job. A properly designed space can improve your productivity.
Realize that new stresses will come with working from home. Your kids will have to be able to understand that just because you’re home doesn’t mean you can play all the time. Your life partner will have to be willing to sacrifice some of the time spent with you. Additionally, you need to make sure that you are emotionally ready to deal with the isolation that can come with working from home, as well as ensure that you are sufficiently self-motivated.
If you feel you are emotionally ready, and if your finances can handle it, quitting your day job can be a good choice.
Photo from Wikimedia Commons.
The articles are written by personal finance enthusiasts (not certified professionals) based on their personal experience. What works for them may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
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